Is the trend your friend on USD/JPY? The pair just tested the rising trend line on the 4-hour time frame as it pulled back from its recent highs. It seems to have found support at the 38.2% Fibonacci retracement level, which is in line with the 94.50 minor psychological handle. At the same time, stochastic crawled out of the oversold region and appears to be headed back up, suggesting that the uptrend could resume.
After bouncing a few times off support around 121.75, EUR/JPY appears poised to test the top of the range around the 124.00 mark. Stochastic is moving north, which suggests that euro bulls have enough energy to push the pair higher, perhaps even close the other’s week’s gap near 124.50. Stay on your toes for a potential turnaround in that area though as the 124.00-124.50 area could act as support turned resistance.
Are my eyes deceiving me or is that a falling channel forming on CAD/JPY’s 1-hour time frame? Let me take off my groovy shades to take a closer look! The pair has been making lower highs and lower lows, as it just tested the bottom of the channel around the 92.00 major psychological level. It looks ready to test the top of the channel once more and possibly find resistance at the 93.50 minor psychological level. Make sure you wait for stochastic to turn if you’re planning to short!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.